Unilever's new-concept center is situated in downtown shanghai, china, attracting hundreds of eager volunteers to test the firm's latest product innovations on-site while unilever researchers monitor consumer reactions. in this example, unilever is trying to reap the benefits ofa. location economies. b. economies of scope. c. learning races. d. network effects.

A) location economies.

Explanation:

Multinational corporations (like Unilever) are able to get advantage from the different cultures, economies and world markets. Location economies refers to the strategy of producing goods at locations that optimize their profit ratios, especially through low costs.

In this case, Unilever is reaping the benefits of a location that provides hundreds of volunteers that are willing to test their products for free, even though some might be hazardous. It is always cheaper to run biological tests with poor people, that is why pharmaceuticals test their new drugs in Africa or Southeast Asia. There will always exist the possibility that something goes wrong but it is much cheaper to fix those mistakes in China than in the US or the UK.

answer; intensive use of a sales force and is relatively costly;